Pontiacers discuss supply management’s role in trade talks

Pontiacers discuss supply management’s role in trade talks

Canada’s trade relationship with the United States has been making headlines for some months now, due largely to President Donald Trump’s chaotic implementation (and scrapping of) various tariffs. More recently the president’s ire has been directed at Canada’s supply management system, which governs Canada’s dairy, egg and poultry sectors, prompting numerous headlines in Canadian media about its future, especially given the government’s recent scrapping of its digital services tax in response to U.S. pressure.

CHIP 101.9 spoke with two Pontiacers with knowledge of the industry to get their perspective on the situation.

Tyler McCann is a Pontiac farmer and director of the Canadian Agri-Food Policy Institute, a think-tank specializing in agricultural issues. He began by stating that every country has certain industries that they protect or subsidize, pointing to the U.S. sugar industry as an example.

McCann explained that despite President Trump’s bluster, it’s worth paying attention to what the U.S. dairy lobby is seeking in trade negotiations with Canada, such as increased access for high profit margin items like cheese.

He said that the recently passed Bill C-202, which restricts certain adjustments to the supply management system, may offer a false sense of security, as there are ways it could be worked around. Critics have voiced concerns that the bill could undermine Canadian negotiators in trade talks.

Scott Judd is a fifth generation Pontiac dairy farmer, and with 158 head of Holsteins to milk, his family is one of the larger producers in the region. He said that while there may be plenty of “doom and gloom” headlines lately, he didn’t foresee any drastic changes to the system. He anticipated U.S. producers could get concessions, such as access to more market share, but added that Canadian producers would likely be compensated in that case.

Judd added that Bill C-202 was a confirmation of what all the major parties said during the last election: that they would support supply management.

The interview (which has been edited for length and clarity) with McCann (29m30) is available here.